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As part of the investigations, Securities and Exchange Board of India had initiated questioning of around 300 brokers on charges of colluding with NSEL to defraud investors in September last year. Sebi, in an order uploaded on its website, accused the brokers of having a close association with NSEL and of "becoming channels".

TIMESOFINDIA.COM | Updated: Feb 23, 2019, 13:38 IST

Highlights

The order came in relation to the Rs 5,600 crore National Spot Exchange Limited (NSEL) scam

SEBI urges the investors to withdraw or transfer their securities within the next 45 days without any additional cost

Other leading broking firms named in the scam include Anand Rathi Commodities and Geofin Commodities

As part of the investigations, Securities and Exchange Board of India had initiated questioning of around 300 brokers on charges of colluding with NSEL to defraud investors in September last year. Sebi, in an order uploaded on its website, accused the brokers of having a close association with NSEL and of "becoming channels".

The order further stated that "the noticee is not a fit and proper person to be granted registration or to operate as a commodity derivatives broker".

The regulator has urged the investors of these broking firms to withdraw or transfer their securities within the next 45 days without any additional cost.

The NSEL scam refers to the payment crisis arising from under-delivery or non-delivery of physical commodities that investors booked for at the godowns of the spot exchange. The crisis blew out on July 31, 2013 and subsequently, the exchange was shut by the government.

Other leading broking firms named in the scam include Anand Rathi Commodities and Geofin Commodities.

With the commodities arm of Motilal Oswal and India Infoline declared as "not fit and proper", uncertainty looms over the future of the unified broking business of the firms.

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